> This is the same in the US, if you hire someone in a different state you need a legal entity in that state, and there may be different local laws around taxes

> This is the same in the US, if you hire someone in a different state you need a legal entity in that state, and there may be different local laws around taxes, health insurance, pay, etc. While you have to register your business in the other state, you most certainly don't need a separate legal entity. I help run a small company with employees in three states, but we only have a single legal entity.